Gilt Groupe Begins Charting Course to IPO

NEW YORK (The Deal) -- Gilt Groupe, the New York-based online fashion retailer targeting primarily women from the ages of 25 to 35, is working with Goldman Sachs Group Inc. as it plans an initial public offering for later in 2014, according to a person familiar with the matter.

The company's debut on public markets would mark a successful turnaround for a startup that took in more than $200 million in venture and debt financing, and shuffled CEOs in 2013, before righting its course. Bloomberg News first reported late Monday that Gilt Groupe would work on its IPO with Goldman.

Now, the company is said to be cash flow positive for 2014, and while a clear picture of last year's revenue has not emerged, a source said that even a hiccup in revenue growth should likely not disrupt the company's IPO trajectory. Gilt, founded in 2007, is said to have taken in $550 million in 2012, up from $450 million in 2011.

The company, according to a source, was adjusted-Ebitda positive for 2013 and profitable on an adjusted Ebitda basis for 2013 as well. It is believed to be generating cash from operations at the end of last year, as well. In addition to the company's web site, it has powered sales with a daily newsletter it sends to a highly engaged base of subscribers.

The success of online retailer Zulily is beginning to embolden investors in e-commerce startups to again prepare IPOs, one source suggested. Zulily debuted on public markets at the top of its range, $22 per share, in November 2013, and at Tuesday's open was up 75%, at $38.49.

If you liked this article you might like

How to Live Just Like Billionaire Warren Buffett

GrubHub Is Remarkable, So It's Crazy How Many Have People Have Bet Against It

And You Thought You Knew Everything About Warren Buffett

Nobody Puts Facebook in a Corner; Markets End Mixed -- ICYMI Monday

History May Be Prologue on Snap-Like IPOs